Which of the Following Is True Regarding Pre-Employment Inquiries (PI)

question 17

Multiple Choice

Which of the following is true regarding pre-employment inquiries (PI) ?

• A) They have little potential for being used for discriminatory purposes in the assessment process.
• B) Organizations rarely make inappropriate and illegal PIs.
• C) It is critical for employers to understand the laws and regulations regarding PIs.
• D) The emphasis in PIs is on the illegal collection of information.

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Definitions:

Option Contract

A financial derivative that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a specified timeframe.

Futures Contract

A forward contract with the feature that gains and losses are realized each day rather than only on the settlement date.

Forward Contract

A legally binding agreement between two parties calling for the sale of an asset or product in the future at a price agreed upon today.

Strike Price

The set price at which the holder of a financial instrument can buy or sell the underlying asset in options trading.